Zillow Facing Lawsuit Over Controversial "Zestimate" System

A homeowner in Illinois has filed suit against Zillow, claiming that the online realty giant’s controversial “Zestimate” tool repeatedly undervalued her home, creating a “tremendous road block” to its sale. The suit alleges that despite Zillow’s denial that Zestimates constitute “appraisals,” the fact that they offer market-value estimates and “are promoted as a tool for potential buyers to use in assessing [the] market value of a given property” meets the definition of an appraisal under state law.